WOW! Reports Results for the First Quarter Ended March 31, 2014

ENGLEWOOD, Colo.--(BUSINESS WIRE)--WOW! Internet, Cable & Phone (WOW!), a leading, fully-integrated
provider of residential and commercial high-speed data, video and
telephony services to customers in the Midwestern and Southeastern
United States, today reported financial and operating results for the
first quarter ended March 31, 2014.

Financial & Operating Highlights
(1)(2)

For the first quarter ended March 31, 2014, WOW! reported total Revenue
of $312.1 million and Adjusted EBITDAof $109.0 million,
representing a sequential increase of $7.6 million (or 2.5%) and $0.5
million, respectively, over the fourth quarter ended December 31, 2013
and representing an increase of $13.5 million (or 4.5%) and $3.7 million
(or 3.5%), respectively, over the pro forma first quarter ended March
31, 2013.

Additionally, WOW! reported an increase in total customers of 11,800 and
an increase in total RGUs of 11,700 over December 31, 2013 subscriber
counts primarily as a result of continued, strong customer acquisition
activity of high-speed data (“HSD”) subscribers during the first quarter.

Conference Call

WOW! will host a conference call on Monday, May 12, 2014 at 1:00 pm
Eastern to discuss the operating and financial results contained in this
press release. Conference call information is as follows:

Call Date:

Monday, May 12, 2014

Call Time: 1:00 p.m. Eastern

Dial In:

(877) 541-5069

Intn’l Dial In: (443) 842-7607

Conf. ID:

35165431

A recording of the conference call will be available approximately two
hours after the completion of the call until June 12, 2014. The dial in
number for this replay is (855) 859-2056. Additionally, a copy of the
transcript will be available approximately forty-eight hours after the
call, at www.wowway.com.

____________

(1)

Certain pro forma financial information for periods presented herein
has been prepared giving effect to our September 27, 2013 asset
acquisition of Bluemile, Inc. as if such transaction had been
completed at the beginning of each respective period presented.
Therefore, pro forma financial information includes unaudited
financial information for Bluemile for the period from January 1,
2013 to March 31, 2013. See “Unaudited Pro Forma Condensed Combined
Financial Information” and the accompanying tables in this release.

(2)

Adjusted EBITDA is not a measurement of financial performance under
generally accepted accounting principles. For a definition of
Adjusted EBITDA, information about management’s reasons for
providing data with respect to this measurement and the limitations
associated with its use and a quantitative reconciliation of
Adjusted EBITDA to net income (loss), see “Definitions of Non-GAAP
Financial and Operating Metrics”, “Unaudited Reconciliations of
Non-GAAP Measures to GAAP Measures” and the accompanying tables in
this release.

The following provides a summary of our statements of operations as
filed with the U.S. Securities and Exchange Commission (“SEC”) for the
three months ended March 31, 2014 and 2013, respectively:

The unaudited condensed consolidated statements of operations above and
the information in this press release should be read in conjunction with
our Form 10-Q for the quarter ended March 31, 2014 as filed with the SEC
on May 9, 2014 and our Form 10-K Annual Report for the year ended
December 31, 2013 as filed with the SEC on March 17, 2014. For ease of
use, references in this press release to “WOW! Internet, Cable & Phone”
or “WOW!” mean WideOpenWest Finance, LLC and its consolidated
subsidiaries.

About WOW!

WOW! has been one of the nation’s leading providers of high-speed
Internet, cable TV, and phone serving communities in Illinois, Michigan,
Indiana and Ohio since 1996. In July 2012, WOW! acquired Knology, Inc.
and began serving communities in the Southeast and Midwest. Our
operating philosophy is to deliver an employee and customer experience
that lives up to its name. WOW! is privately owned and controlled by
Avista Capital Partners. For more information, please visit www.wowway.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
statements reflect management’s current views with respect to future
events and financial performance. The forward-looking statements
included in this release are made as of the date hereof. Except as
required by law, we assume no obligation to update these forward-looking
statements, even if new information becomes available in the future.
Actual results may differ materially from those expected because of
various risks and uncertainties. You should review our filings with the
SEC, including the section titled “Risk Factors” contained in our Form
10-K Annual Report filed with the SEC on March 17, 2014.

Unaudited Pro Forma Condensed Combined
Financial Information

The following unaudited pro forma condensed combined financial
information has been developed by applying pro forma adjustments to the
individual historical unaudited financial information of Bluemile, Inc.
(“Bluemile”). The unaudited pro forma condensed combined financial
information for the periods presented herein have been prepared giving
effect to our acquisition of certain Bluemile assets on September 27,
2013, as if such transaction had been completed at the beginning of the
periods presented. Therefore, unaudited pro forma condensed combined
financial information includes the unaudited financial information for
Bluemile for the period from January 1, 2013 to March 31, 2013. The
historical consolidated financial information has been adjusted to give
effect to pro forma events that are (1) directly attributable to such
transactions, (2) factually supportable and (3) expected to have a
continuing impact on the combined results.

The unaudited pro forma condensed combined financial information is for
informational purposes only and does not purport to represent what our
results of operations or financial information would have been if the
Bluemile asset acquisition had occurred at any date, nor does such
information purport to project the results of operations for any future
period.

The unaudited pro forma financial statements should be read in
conjunction with the information contained in “Management’s Discussion
and Analysis of Financial Condition and Results of Operations,” the
consolidated financial statements and the accompanying notes appearing
in our Form 10-Q for the quarter ended March 31, 2014 as filed with the
SEC on May 9, 2014 and our Form 10-K Annual Report for the year ended
December 31, 2013 as filed with the SEC on March 17, 2014.

The following table provides a summary of our pro forma adjustments for
the three months ended March 31, 2013, related to Bluemile:

We have included certain non-GAAP financial measures in this press
release including Adjusted EBITDA and Pro Forma Adjusted EBITDA. We
believe that these non-GAAP measures enhance an investor’s understanding
of our financial performance. We believe that these non-GAAP measures
are useful financial metrics to assess our operating performance from
period to period by excluding certain items that we believe are not
representative of our core business. We believe that these non-GAAP
measures provide investors with useful information for assessing the
comparability between periods of our ability to generate cash from
operations sufficient to pay taxes, to service debt and to undertake
capital expenditures. We use these non-GAAP measures for business
planning purposes and in measuring our performance relative to that of
our competitors. We believe these non-GAAP measures are measures
commonly used by investors to evaluate our performance and that of our
competitors.

Adjusted EBITDA is defined by WOW! as net income (loss) before net
interest expense, income taxes, depreciation and amortization (including
impairments), gains (losses) realized and unrealized on derivative
instruments, management fees to related party, the write-up or write-off
of any asset, debt modification expenses, loss on extinguishment of
debt, integration and restructuring expenses and all non-cash charges
and expenses (including equity based compensation expense) and certain
other income and expenses, as further defined in our credit facilities.
Adjusted EBITDA is not a presentation made in accordance with generally
accepted accounting principles in the United States of America (“GAAP”)
and our use of the term Adjusted EBITDA varies from others in our
industry. Adjusted EBITDA should not be considered as an alternative to
net income (loss), operating income or any other performance measures
derived in accordance with GAAP as measures of operating performance or
operating cash flows or as measures of liquidity.

Adjusted EBITDA has important limitations as an analytical tool and you
should not consider it in isolation or as a substitute for analysis of
our results as reported under GAAP. For example, Adjusted EBITDA:

excludes certain tax payments that may represent a reduction in cash
available to us;

does not reflect any cash capital expenditure requirements for the
assets being depreciated and amortized that may have to be replaced in
the future;

does not reflect changes in, or cash requirements for, our working
capital needs; and

does not reflect the significant interest expense, or the cash
requirements necessary to service interest or principal payments, on
our debt.

Furthermore, Adjusted EBITDA in this release is (i) sometimes presented
on a Pro Forma basis, giving effect to our Bluemile asset acquisition on
September 27, 2013 as if such transaction had been completed at the
beginning of each period presented (see “Unaudited Pro Forma
Condensed Combined Financial Information” above for
complete discussion), and (ii) sometimes further adjusted to include the
estimated run-rate cost savings we expect to achieve in connection with
our Knology merger, Bluemile asset acquisition and transitioning our
billing system from one provider to another which is calculated in
accordance with the definitions in our senior secured credit facilities.

See “Unaudited Reconciliations of Non-GAAP Measures to GAAP
Measures” below and the accompanying tables for reconciliations
of Adjusted EBITDA and Pro Forma Adjusted EBITDA to our net income
(loss), which is the most directly comparable GAAP financial measure.

In addition, we use the following operating metrics in this release:

Homes Passed – We report homes passed as
the number of residential units, such as single residence homes,
apartments and condominium units, passed by our broadband network and
listed in our database excluding those we believe are covered by
exclusive arrangements with other providers of competing services.

Total Customers - Because we deliver
multiple services to our customers, we report the total number of
customers as those who receive at least one of our video (“Video”),
high-speed data (“HSD”) or telephony (“Telephony”) services, without
regard to which or how many of those services they subscribe. We
report Video subscribers as the number of basic cable subscribers and
do not include customers who only subscribe to HSD or Telephony
services in this total. The combined total of Video, HSD and Telephony
subscribers is referred to as Revenue Generating Units (“RGUs”).

Subscriber information for acquired entities is preliminary and subject
to adjustment until we have completed our review of such information and
determined that it is presented in accordance with our policies.

As of the end of each of the following respective quarters, the
Company’s operating metrics were as follows:

% Change

% Change

4Q-13

1Q-13

2Q-13

3Q-13

4Q-13

vs. 3Q-13

1Q-14

vs. 4Q-13

Homes Passed

2,981,000

2,987,000

2,995,000

0.27

%

2,997,100

0.07

%

Total Customers

814,500

831,200

841,100

1.19

%

852,900

1.40

%

Video Subscribers

682,300

690,700

694,400

0.54

%

694,300

-0.01

%

HSD Subscribers

709,100

725,400

740,000

2.01

%

756,700

2.26

%

Telephony Subscribers

429,500

426,700

423,700

-0.70

%

418,800

-1.16

%

Total RGUs

1,820,900

1,842,800

1,858,100

0.83

%

1,869,800

0.63

%

Improved sequential net subscriber activity during first quarter ended
March 31, 2014 was driven primarily by continued strong trends in
customer acquisition activity. In addition, the first quarter increases
in total customers, video subscribers and total RGUs in the table above
includes an increase of 400 total customers, video subscribers and total
RGUs attributable to a change in reported subscribers in certain former
Knology markets to conform to the Company’s reporting methodology
related to bulk customers in multi-dwelling units.

Unaudited Reconciliations of Non-GAAP Measures
to GAAP Measures

The following table provides an unaudited reconciliation of our net loss
to Adjusted EBITDA and Pro Forma Adjusted EBITDA for the three months
ended March 31, 2014 and 2013, respectively: